I'm going to do a link exchange with someone but another site who did a link exchange with him is using the same anchor text so I can't do it for my 2 word phrase. My question is, should I tell him to put a three word phrase and split my two-word phrase up by having a third word in between or should I keep them together and put the third word before of after? Example: My keyword phrase: xxxx yyyy Should I do this xxxx zzzz yyyy (have the new word in between) or this: xxxx yyyy zzzz / zzzz xxxx yyyy (keep xxxx and yyyy next to each other) Thanks for the help!
Just use the prase xxxx yyyy as you have planned to use it initially. It will increase the weight for your site anyway. Of course, there will be an equal contribution to the second site, too, but that may happen at any time anywhere and you will never be able to avoid that. Try to get this phrase into any friendly website you can get a text link offer from - and you will profit from the positive effects for your ranking. Don't worry about your competitor so much - (s)he has first to catch up with you in placing her/his text links.
use anchor text that can bring to your site traffic & conversion... try to use inventory.overture.com for choosing your targeted keywords. Good luck!